Josee is a 1/3 partner in HJC Partnership. This year, the partnership hadthe following transactions:Rental income $ 8,500Salaries paid $ 45,000Cost recovery deductions $ 18,000Municipal bond interest $ 1,100Supplies, repairs $ 2,000Charitable contribution $ 1,000Short-term capital gain $ 17,000Payroll taxes paid $ 12,500Fees received $ 90,000Dividend income $ 2,500Cost recovery (AMT) $ 5,600Required:Show how the above transactions will be reported to Josee (Ordinaryincome vs. separately stated). For each separately stated item, state why itmust be separately stated. (Show your work)

Only those transactions which are not related to the day to day transactions of the business are to…

Josee is a 1/3 partner in HJC Partnership. This year, the partnership had the following transactions: Rental income $ 8,500 Salaries paid $ 45,000 Cost recovery deductions $ 18,000 Municipal bond interest $ 1,100 Supplies, repairs $ 2,000

Josee is a 1/3 partner in HJC Partnership. This year, the partnership had the following transactions: Rental income $ 8,500 Salaries paid $ 45,000 Cost recovery deductions $ 18,000 Municipal bond interest $ 1,100 Supplies, repairs $ 2,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart receive an annual guaranteed payment of $10,000 each to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: $ 340,000 3,300 1,200 (120,000) ( 75,000) (28,000) (20,000) (4,500) $ 97,000 Sales r evenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overall net income (Leave no answer blank. Enter zero if applicable.) c. How much self-employment tax will each partner pay assuming none has any other source of income or loss? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Jhumpa Stewart Kelly Self-employment tax
Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $38,000 and $28,000, respectively; and the remainder to be divided equally. How much of the net income of $77,000 is allocated to Yolanda? Oa. $77,000 Ob. $36,000 Oc. $44,000 Od. $38,000
The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix, the managing partner, receives a salary allowance of $108,000, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Alix $600,000, Gise $1,200,000, and Bosco $1,800,000. If partnership net income is $540,000, the amount allocated to Alix should be a. $90,000. Ch10,11,12 Principles of Accounting I b. $162,000. c. $180,000. d. $198,000.
Angel has a one-fourth and Brian has a three-fourths interest in a partnership that operates a toy manufacturing company. The partnership books disclose the following information for the current calendar year: Sales $235,000 Sales returns and allowances 10,000 Beginning Inventory 50,000 Purchases 50,000 Manufacturing cost of labor and supplies 105,000 Ending Inventory 61,000 Salaries 26,000 Guaranteed payments to partners($8,400/each) 16,800 Rent expense 17,000 Interest expense 550 Taxes expense 8,500 Bad debt expense 1,000 Repairs expense 3,000 Depreciation expense (tax depreciation) 2,470 Utilities expense 1,680 Net long-term capital gain (sold computer) 600 Compute the partnership ordinary income?
A partnership begins its first year with the following capital balances: The articles of partnership stipulate that profits and losses be assigned in the following manner: Bernard is allocated compensation of $18,000 per year. Each partner is allowed to withdraw up to $5,000 cash per year. Any remaining profits and losses are allocated on a 3:3:4 basis, respectively. Each partner is allowed to withdraw up to $5,000 cash per year. Assuming that the net income is $60,000 and that each partner withdraws the maximum amount allowed, what is the balance in Collins capital account at the end of that year? $70,800 $86,700 $73,500 $81,700
Xavier and Yolanda have original investments of $46,000 and $103,600, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $26,800 and $31,800, respectively; and the remainder to be divided equally. How much of the net income of $111,000 is allocated to Xavier? Oa. $47,240 Ob. $56,688 Oc. $36,000 Od. $26,800
Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net income of $40,000 is allocated to Xavier? 21. a. $20,000 b. $22,000 c. $32,000 d. $0 Moderate OBJ: LO: 12-02 DIF: PTS: 1 ANS: B KEY: Bloom's: Application NAT: BUSPROG: Analytic
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,500, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land ($1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses (Negative amounts should be indicated by a minus sign.) Problem 20-61 Part a (Algo) a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss). Req A1 Complete this question by entering your answers in the tabs below. Req A2 $ 80,700 6,900 (28,200) (18,100) (17,200) (4,600) Description Separately Stated Items on Schedule K-1: §1231 gains Cash charitable contributions Compute Gary's share of separately stated…
The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: • Jones, the managing partner, receives a bonus equal to 15 percent of the business's profit. • Each partner receives 10 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2021 were as follows: Jones King Lane The partnership earned $84,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners. (Loss amounts should be indicated with a minus sign.) Net income Bonus Interest $ 190,000 380,000 570,000 Remainder to allocate Total allocation Jones King Lane Total
Beck and Nilo are equal partners in B & N Associates, a general partnership. B & N has the following liabilities at the end of the current year: Accounts payable Unsecured bank loan Note payable secured by collateral What amount of the debt is included in Beck's at-risk amount in the partnership? A. $2,000 B. $7,000 C. $13,000 D. $15,000 $4,000 10,000 16,000